Project-based budgeting in shipbuilding enterprise

Abstract

In today's market conditions the activity of shipbuilding process is held with special aspects of project management, which have direct dependence on realization project's of build and repair ships. The project approach of the management on the grounds of project-oriented budgeting is significantly different from the functional-oriented approach of the management and process of budgeting on others organizations. In connection with this the project-oriented budgeting approach should include mentioned above special aspects which are described below:

Firstly, the projects being inherently "unique" characterized by a fairly high degree of uncertainty in the assessment of its budget.

Secondly, the distribution of costs including time interval and depend on the schedule of works.

Thirdly, projects to the extent of its implementation may be affected.

Fourthly, start and finish the project does not always coincide with the beginning and end of the financial year.

Fifthly, necessary to take into the account the high uncertainty receive cash flows from the project activity shipyards.

Processes of building a system of project-oriented management on the grounds of budgeting must include the specific budgeting principles and main types of budgets.

In this article were considered basic principles of budgeting process and developed main types of budgets in shipbuilding enterprise. The types of budgets and principles of the budgeting, which are fully described in this article, defined the conceptual foundations of the laws of budgeting for shipbuilding industry, providing feasibility analysis and control budgets in shipbuilding enterprise.